Q: If $800 is deposited in a savings account that pays an interest rate of 5% annually, how much money will be in the account after 15 years. Possible Answers: A) $1,663; B) $1,609; C) $384; D) $238. I can't for the life of me figure it out. Please help!!!
2007-11-19 00:37:55 · 3 answers · asked by bootlegteen47 2 in Science & Mathematics ➔ Mathematics
The formula you seek is call compound interest formula.
It is: A = P(1+i)^n
Where A is final amount of money,
P is initial (principle) amount of money,
i is interest writen as a decimal I.e. 0.05,
n is number of years.
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Spoiler Alert
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So use the above equation, put in P = 800, i = 0.05 and n = 15 to find A.
2007-11-19 00:41:36 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Banks use compound interest right?I'm sure it is.
Use this formula.A=P(1 + i/100)^n where A is the amount of money,i is the interest rate and n is the number of years.
2007-11-19 09:15:22 · answer #2 · answered by Kenneth Koh 5 · 0⤊ 0⤋
Also as a last resort you could use a spread sheet program (like Excel) and multiply 800 by 1.05 , then that result by 1.05, etc for 15 times.
2007-11-19 08:46:13 · answer #3 · answered by rscanner 6 · 0⤊ 0⤋